ENABLING A WORLD CLASS VISION

Transcription

1 70 YEARS OF ACHIEVEMENT ENABLING A WORLD CLASS VISION ANNUAL REPORT

2

3 A world class vision enabled by 70 years of Achievement In this the year of our 70th anniversary, we celebrate our many accomplishments and enduring corporate legacy. As part of this celebration, we acknowledge the visionary men and women whose foresight and effort shaped the transition of Kingston Wharves from its humble beginnings on the waterfront in Downtown Kingston in 1945 into a strong force in the shipping industry. This tenacity and drive, an intrinsic part of the fabric of our corporate culture, is the driving force in our sustainability during challenging times and in our bold vision to become the world s leading multiuser multipurpose port operator.

4 1 The year was 1945; a time of pound, shilling and pence; World War II had ended, Sir Alexander Bustamante became Jamaica s fi rst Premier and reggae icon Robert Nesta Bob Marley was born. That year also saw the birth of Kingston Wharves Limited (KWL), starting with four fi nger piers Princess, Orange, Hanover and East Streets. The photo shows an aerial view of the fi nger piers of downtown Kingston in 1950s. Before modern technological advancements goods could only be transported by using pallets, crates and boxes. This required a robust labour-force of thousands to get the job done. In this photo trucks are transporting goods from the port in the late 1930s. Trucks loading lumber at the wh DELIVERING THEN & DELIVERING TODAY KWL is formed with an authorized capital of 249, KWL s Terminal now operates 24 hours per day, 365 days per year with a continuous quay 1,655 metres long offering 9 deepwater berths with draft up to 13 metres for ro-ro, lo-lo, container, general break bulk and bulk cargoes. KWL has grown tremendously over the years by embracing technological advancements which complement equipment acquisition, customer care and security to maximize on productivity. In recent years, KWL has expand break-bulk cargo to include cem

5 2 3 arves for deliveries. The advent of containerisation revolutionised the transportation of cargo and forced the introduction of the cranes and other relevant cargo handling equipment. It was clear that the port had outgrown downtown Kingston and in 1964, the western end of the Kingston Harbour was identifi ed as the ideal location with the creation of Port Bustamante in Newport West. Photo shows vessel docked at Western Terminals. The vision at the time was to establish the most modern port in the Caribbean. This new port was fi rst occupied by Western Terminals Limited and then Kingston Wharves Limited. On the February 14, 1966, the S.S. United States pictured here docked to celebrate the opening of Newport West. The Daily Gleaner in an editorial that month affi rmed that the development of Newport West is the single most important addition to Jamaica s economy since the discovery of bauxite about a quarter century ago. 1964: KWL purchases 56 acres of land to be reclaimed as part of the Newport West Project 1966: KWL docks its fi rst ship, the S.S. Santa Rosa, at its new 5 deep-water berth facility : Security Administrators Limited is established 1963: Incorporation of Royal Mail Line Pier into KWL operations expands its facility to 12 Berths ed its stevedoring operations of ent, lumber and steel : Harbour Cold Stores begins operation 1972: The fi rst Container Transshipment Terminal in Jamaica is managed by KWL KWL s Terminal has on-dock 260,000 square metres of open storage, 16,680 square metres of warehouse and a Transshipment car park of 48,562 square metres. KWL is the Operating Regional Transshipment Hub for Seaboard Marine, Seafreight Lines (A Crowley Company) and Hoegh Autoliner. KWL has copped the Caribbean Shipping Association s Best Multi-purpose Terminal of the Year title for 2006, 2007 and 2009 and was recognized in 2010 and 2008 as the Region s most effi cient port, an acknowledgement of its commitment to operational effi ciency. In 2010 the Port was also recognized for its growth and development.

6 4 5 6 Container Transshipment from Kingston offi cially began in 1975 at berths 10 and 11. KWL managed the government-owned transshipment facility until The photo shows the unloading of the 2 Paceco Gantry Cranes that dominated the Kingston shoreline in the early years of the transshipment facility. A longtime tradition for Jamaicans living overseas has been sending barrels fi lled with food, clothing and household items to family and friends back home. Workers are shown unloading barrels from a container at the port sometime in the 1980s in this photo. The photo shows the KWL then Cha company s name plate to mark its li on September 26, The listing the two major private wharf compan Terminals and KWL to make a new a name KWL. 1994: Western Terminal Limited, owners of berths 1 and 4, is acquired 2004: NCB acquires majority shareholding The Modernization of Berths 8 and : Majority shareholding is acquired by the JP Group KWL celebrates 70 Years of Achievement START COMPLETED : Grace Kennedy and Company Limited ends almost 60 years of managing KWL KWL purchases its fi rst Gottwald Mobile Crane and begins offering stevedoring services : KWL awarded Free Zone Status With the completion of the Panama Canal expansion in on the horizon, KWL has proactively positioned itself to take advantage of the expected increase in container vessels to the region by upgrading its terminal equipment and facilities. Warehousing and the delivery of deconsolidated cargo including barrels remain key segments of operations at KWL. : Government, private sector an future site of the KWL Total Logistics for the 160,000 sq ft development.

7 3D illustrated view of the loading dock of the KWL Total Logistics Facility (TLF), currently under construction. irman, Rafael Diaz sliding the sting on the Jamaica Stock Exchange was the culmination of the merging of ies on the Port of Kingston Western nd expanded company under the DELIVERING FOR TOMORROW The tenacity and drive that has delivered 70 Years of Achievement, is the same force that we will harness as we journey towards the goal of becoming LEAD LOGISTICS PROVIDER. Highly customised warehousing, production and distribution services Modern warehousing and logistics space Fully functioning special economic zone located within port boundary and in close proximity to International and Domestic Airports Terminal Optimisation Post-Panamax Handling Capacity d KWL executives converged at the Facility to symbolically break ground 3D Illustration of the Rehabilitated KWL Terminal

8 Contents 3 Vision 3 Mission 4 Core Values 39 READYING INFRASTURCTURE: OPTIMIZED AND RELIABLE EQUIPMENT 5 Notice Of Annual General Meeting 7 KWL At A Glance 7 Performance Summary 11 Ten Year Statistical Review 13 Chairman s Message 15 Board Of Directors Directors Report 21 Corporate Governance 25 CEO s Report 27 Leadership Team 31 Delivering Growth

9 For more information please visit: 32 MANAGEMENT DISCUSSION & ANALYSIS 34 Performance 37 Winning Service Strategy: KWL ACE 37 Grasping The Logistics Opportunity 38 Technology Underpinning Our Growth Strategy 39 Realising Our Vision Through High Performance People 39 Readying Infrastructure: Optimized And Reliable Equipment 41 Leaders In Safety & Security 47 Top Ten Shareholders 48 Directors And Executives Shareholdings 49 Corporate Data 52 FINANCIAL STATE TATEMENTS TS 53 Independent Auditors Report Advisory To Shareholders Proxy Form 41 Outlook BUSINESS HIGHLIGHTS 45 KWL In The Community KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 2

10 VISION To become the world s leading multi-user multi-purpose port operator MISSION To be the multipurpose port of choice for the movement of cargo by providing consistently high quality service to the benefit of all stakeholders 3

11 For more information please visit: CORE VALUES INTEGRITY Our actions and decisions shall reflect the highest ethical standards, professionalism and honesty. CUSTOMER FOCUS We are deeply committed to meeting the needs of our customers, and we will constantly focus on customer satisfaction. RESPECT We will respect the dignity and rights of our employees and customers. TEAMWORK We know that to be a successful company we must work together, frequently transcending organizational and departmental boundaries to meet the changing needs of our customers. SOCIAL RESPONSIBILITY We play an active role in making our country and the community in which we operate a better place to live and work, knowing that the ongoing vitality of our country and community has a direct impact on the longterm success of our business. PERFORMANCE We strive for continuous improvement in our performance, measuring results carefully and ensuring that integrity and respect for people are never compromised. KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 4

12 notice of AGM NOTICE is hereby given that the Annual General Meeting of Kingston Wharves Limited will be held at the Jamaica Pegasus Hotel, 81 Knutsford Boulevard, Kingston 5 on June 23, 2016 at 10 a.m. for the following purposes: ORDINARY BUSINESS 1. To receive the Audited Financial Statements for the year ended December 31, and the Reports of the Directors and Auditors circulated herewith. To consider and (if thought fit) pass the following Ordinary Resolution: THAT the Audited Financial Statements for the year ended December 31, and the Reports of the Directors and Auditors circulated with the Notice convening the meeting be adopted. 2. To declare the dividend of ten cents ($0.10) per share paid on August 11, and of fifteen cents ($0.15) per share paid on January 20, 2016 as final. To consider and (if thought fit) pass the following Ordinary Resolution: THAT as recommended by the Directors, the dividend of ten cents ($0.10) per share paid on August 11, and of fifteen cents ($0.10) per share paid on January 20, 2016 be and are hereby declared as final and that no further dividend be paid in respect of the year under review. 3. To allow for the Rotation of Directors. The directors retiring from office by rotation pursuant to Article 107 of the Company s Articles of Incorporation are Messrs. Jeffrey Hall and Bruce Brecheisen, and Mrs. Kathleen Moss, all Specially Appointed Directors pursuant to Article 86A of the Company s Articles of Incorporation, and Mr Alvin Henry. The Specially Appointed Directors have been approved by their respective Appointing Shareholders for reappointment to the Board, and all the retiring Directors, being eligible, offer themselves for re-election. To consider and (if thought fit) pass the following Ordinary Resolutions: (i) THAT Mr. Jeffrey Hall be and is hereby re-elected a Director of the Company. (ii) THAT Mr. Bruce Brecheisen be and is hereby re-elected a Director of the Company. (iii) THAT Mrs. Kathleen Moss be and is hereby re-elected a Director of the Company. (iv) THAT Mr. Alvin Henry be and is hereby re-elected a Director of the Company. 4. To appoint auditors and authorise the Directors to fix the remuneration of the Auditors. To consider and if thought fit pass the following Ordinary Resolution: THAT PriceWaterhouseCoopers, Chartered Accountants, having agreed to continue in office as auditors, be and are hereby appointed Auditors of the Company to hold office until the next Annual General Meeting at a remuneration to be fixed by the Directors of the Company. 5

13 For more information please visit: 5. To fix the fees of the Directors or to determine the manner in which such fees are to be fixed. To consider and (if thought fit) pass the following Ordinary Resolution: THAT the amount shown in the audited accounts of the Company for the year ended December 31, as fees of the Directors for their service as directors, be and is hereby approved. SPECIAL BUSINESS 6. To amend the Articles of Incorporation of the Company by fixing a maximum number of Directors, and by deleting a duplicated clause. To consider and (if thought fit) pass the following Resolutions as SPECIAL RESOLUTIONS: (i) THAT the existing Article 84 of the Articles of Incorporation be deleted in its entirety and replaced with the following: The Board of Directors shall consist of a minimum of three (3) and a maximum of twelve (12) directors, excluding alternate directors. (ii) THAT the existing Article 122, which is in effect a duplication of Article 85, be deleted in its entirety, and the succeeding Articles be renumbered accordingly. Dated this 28th day of April, By Order of the Board ANNA I. HARRY Company Secretary REGISTERED OFFICE Kingport Building Third Street Newport West Kingston, Jamaica NB: A member entitled to vote at the meeting is entitled to appoint a proxy to vote in his stead. A proxy need not be a member of the company. Enclosed is a proxy form for your convenience, which must be lodged at the office of the Registrar and Transfer Agent of the company, KPMG Regulatory & Compliance Services, 6 Duke Street, Kingston, Jamaica at least forty-eight hours before the time appointed for holding the meeting. The Proxy Form shall bear the stamp of $ The stamp duty may be paid by adhesive stamp (s) to be cancelled by the person executing the proxy. KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 6

14 KWL at a glance Kingston Wharves Limited (KWL) is consistently recognized as the Region s leading Multipurpose Port Terminal Operator, connecting our nation s importers and exporters to over 20 international ports in the Caribbean, Latin and North America. Our Achievements KWL is the recipient of numerous awards and accolades for excellence: Our Business The KWL Group has experienced steady growth through prudent management and a commitment to continuous improvement that has ensured competitiveness, since its inception in Best Multipurpose Terminal of the Year Award for 2006, 2007, 2009 & 2013 CSA Best in Chamber Nominee 2011 Jamaica Chamber of Commerce Growth & Development Awardee for 2010 Caribbean Shipping Association (CSA) Most Efficient Port Awardee for 2010 & 2008 CSA A listed company on The Jamaica Stock Exchange Net Assets Value US$146 million In addition to its core business of terminal operations, the KWL Group operates Security Administrators Limited, a provider of industrial and port security services. Performance Summary Operational CONTAINER TEUs HANDLED () MOTOR UNIT MOVES () DOMESTIC TONNAGE DOMESTIC 86,707 TRANSSHIPMENT 134,288 DOMESTIC 22,971 TRANSSHIPMENT 36, % GROWTH 1.7 MILLION 1.5 MILLION 7

15 For more information please visit: Our Facility 1,655 metre Continuous Quay with draft of up to 13m 12-acre Transshipment Car Park 2,694,000 square foot Open Storage 160,000 square feet Logistics Space Construction Site Berth 1 Berth 9 Berth 8 Berth 7 Berth 6 Berth 5 Berth 4 Berth 3 Berth 2 Google Earth Image FINANCIAL GROUP OPERATING PROFIT ($) KWL OPERATING PROFIT ($) SAL OPERATING PROFIT ($) HCS OPERATING PROFIT ($) % GROWTH 1.6 B M % GROWTH 1.5 B M % GROWTH 43.8 M 34.0 M M 51.7 M KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 8

16 KWL at a glance cont d WE DELIVER The port terminal provides full-range cargo handling and logistics services 24-hours per day, 7 days per week, including: Mooring and Unmooring of Vessels Stevedoring Equipment Rental Stripping and Stuffing of Containers Storage and Warehousing Reconsolidation of Containers Cargo Handling Services Transshipment Refrigerated Container Management & Support TRANSSHIPMENT KWL s transshipment service has achieved exponential growth over the last decade. Two of the Region s premier shipping lines utilize KWL s terminal as their transshipment hub, operating weekly feeder services to Caribbean and Latin American Ports. The regional transshipment hub for one of the world s leading motor vehicle carriers is managed by KWL, the first direct service of its kind from Europe to Jamaica. TERMINAL INFRASTRUCTURE Strategically located on the Port of Kingston 17º58 W, 76º48 N, the Terminal operates 24 hours per day, 365 days per year. Continuous Quay measuring 1,655 metres (5,430 feet) On-Dock Transshipment Car Park: 48,562 square metres or 522,720 square feet 9 Deepwater Berths for ro-ro, lo-lo, container, general break bulk and bulk cargoes On-Dock Warehouse Storage: 16,680 square metres or 180,000 square feet. Vessel Draft 9 metres (29 feet) to 13 metres (32 feet) Off-Dock Storage: 20,000 square metres or 215,000 square feet On-Dock Open Storage: Approximately 250,000 square metres or 2,694,000 square feet Reefer Plugs: 172 at 440 Volts Performance Summary cont d SHAREHOLDERS INTEREST SEGMENT OPERATING REVENUE STOCK PRICE AT YEAR END ($) EARNINGS PER STOCK UNIT ($) % 2% 87% Terminal Operations Security Operations Cold Storage Operations

17 For more information please visit: HOW WE WORK The Equipment & Supporting Systems include: Mobile Harbour Reach Trucks Cranes Stackers 1 Empty Container Handlers 1 Toploaders 1 Terberg Tug Master 15 Bomb Carts Tideworks Terminal Operating System In addition to these resources, we are able to source additional chassis, trucks, trailers and forklifts, upon request OPERATIONAL HIGHLIGHTS () 221,000 Twenty-foot Equivalent Units (TEUs) 1.7 Million Tonnes Domestic Tonnage 59,000 Motor Units Moves The transformation of the KWL Group has been more than 70 years in the making. The Company now looks to working harder to maintain its competitive position as the Caribbean s leading Multipurpose Port and to providing first-class logistics services to drive its transition to LEAD LOGISTICS PROVIDER through major investments in infrastructure, technology, equipment and human capital. KWL has ensured that it is ready to capitalise on the anticipated opportunity of increased transshipment of cargo moving through the Caribbean, particularly Jamaica, when the Panama Canal Expansion is completed. KWL s strategic location, highly connected port terminal services and modern logistics facilities operating under special economic zone status (SEZ), offer an advantageous value proposition to clients to streamline efficiencies in cargo supply chains. For more information visit DIVIDENDS DECLARED ($) MARKET CAPITALISATION ($M) SHAREHOLDERS EQUITY ($M) , , , , , , , , , , KWL Annual Report - 70 years of Achievement 10

18 ten year statistical review 2013 No. of Stock 20 cents each (000 s) 1,430,200 1,430,200 1,430,200 Total Assets () 21,411,543 21,001,026 16,716,664 Net Current Assets () 2,281,209 2,606,034 2,911,375 Deposit & Cash Balance () 3,019,868 2,909,435 3,159,899 Capital Expenditure () 1,202,414 1,252, ,447 Total Gearing () 1,538,117 1,926,748 1,998,940 Shareholders Equity () 17,496,896 16,958,261 12,689,393 PROFIT AND LOSS ACCOUNT Revenue () 4,672,884 3,819,691 4,232,408 % Increase/(Decrease) over prior year Operating Profit () 1,572,056 1,145,267 1,477,042 % Increase/(Decrease) over prior year Finance Costs () 162, , ,746 % Increase/(Decrease) over prior year Profit Before Income Tax () 1,409, ,116 1,151,296 % Increase/(Decrease) over prior year Net Profit Attributable to Equity Stockholders () 1,256, , ,255 % Increase/(Decrease) over prior year Dividends Declared () 357, , ,436 % Increase/(Decrease) over prior year IMPORTANT RATIOS Return on Sales 26.89% 22.24% 19.83% Return on Equity 7.18% 5.01% 6.58% Current Ratio 2.68:1 3.39:1 3.94:1 Debt to Equity Ratio 8.79% 11.36% 15.70% Profit Before Tax to Sales 30.16% 24.11% 27.20% Dividend Cover - Times Interest Cover (inclusive of foreign exchange movement) Total No. of Employees (Permanent and Contractual) Net Profit After Income Tax per Employee () 1, , ,024.7 MARKET STATISTICS Stock Price at year end $11.36 $6.00 $6.06 Earnings per Stock Unit $0.88 $0.59 $0.59 Price Earnings Ratio Net Worth per Stock Unit at year end $12.23 $11.86 $8.91 Net Worth to Total Assets 81.72% 80.75% 76.26% Market Capitalisation () 16,247,072 8,581,200 8,667,012 11

19 for more information please visit: *Restated for the adoption of amendments to IAS 19. *2012 * ,430,200 1,072,650 1,072,650 1,072,650 1,072,650 1,072,650 1,072,650 16,386,680 14,369,707 12,317,049 12,160,635 12,233,560 8,854,977 7,677,911 2,844, , , , , , ,202 3,100,658 1,076,655 1,282,678 1,120,133 1,182, , ,137 52, , , , ,520 1,222,946 1,335,957 2,046,359 2,390,675 2,462,422 3,007,277 3,110,254 2,606,776 1,643,036 12,136,160 9,536,247 7,908,397 7,434,373 7,289,040 4,890,156 4,707,122 3,670,177 3,168,802 3,025,883 2,570,325 2,774,922 2,568,778 2,319, ,075, , , , , , , (30.48) , ,465 34, , , ,111 99, , , , , , , , (47.33) , , , , , , , (43.99) ,020 45, ,717-53,632 85,812 85, (64.64) % 10.65% 19.92% 5.65% 5.79% 13.23% 18.37% 4.51% 3.52% 7.62% 1.95% 2.20% 6.95% 9.05% 3.63:1 1.95:1 2.02:1 2.24:1 2.12:1 1.91:1 2.19: % 25.08% 31.14% 40.45% 42.67% 53.31% 34.91% 22.05% 14.75% 29.32% 7.63% 7.84% 15.97% 22.12% , , ,290.9 $5.00 $5.92 $4.00 $3.08 $4.80 $7.65 $7.94 $0.41 $0.31 $0.56 $0.14 $0.15 $0.32 $ $8.52 $8.93 $7.37 $6.93 $6.80 $4.56 $ % 66.68% 64.21% 61.13% 59.58% 55.22% 61.31% 7,151,000 6,350,088 4,290,600 3,303,762 5,148,720 8,205,773 8,516,841 KWL Annual Report - 70 years of Achievement 12

20 DELIVERING GROWTH: Strategic Vision, Sound Investments, Strong Team, Serving Customers CHAIRMAN S MESSAGE Kingston Wharves Limited recorded strong financial results in and celebrated a major milestone; its 70th Anniversary. Our financial strength and 70-year record of capital investment, business development and competitiveness is the foundation upon which we will anticipate and confront the new challenges and opportunities facing the Group. Kingston Wharves is directly affected by the level of trade between Jamaica and its trading partners and, for our transshipment business, by the level of regional and global trade. Trade, in turn, is dependent on consumer trends, the health of Jamaica s economy and that of our region and the world, and the ease and cost of securely moving goods across borders. Some challenges and uncertainties loom in the short term, but we are convinced that on balance, over the long-term, the outlook for each of these factors favours Kingston Wharves. Jamaican consumers, like their global counterparts, are increasingly networked by digital platforms, mobile technologies and social media and this is driving their demand for products from all across the world. We think it is neither practical nor desirable for Jamaica to try to buck this trend. In fact, to the contrary, we believe that Jamaica stands to gain if we set out to facilitate it with competitive logistics services such as those offered by Kingston Wharves. 13

21 For more information please visit: Jamaica s economy continues to be seriously constrained by the government debt overhang and major parts of the global economy have been shaken by reduced commodity prices. We expect, however, that these forces will ultimately be tempered by the increased competitiveness of Jamaica which has seen an adjustment in exchange rates, reduced interest rates, stable inflation, improving road infrastructure and is a net beneficiary of reduced global commodity prices. In addition, for Kingston Wharves, in particular, our strategic position between the major commodity producers of South America and the huge consumer markets of North America acts as an important hedge to volatility in the global economy. Finally, we still expect that the expanded Panama Canal, set for completion in June of this year, will improve the prospects for our port in handling the still growing supply of manufactured goods from Asia to the West. The ease of moving goods across our borders continues to be an area of focus for Government policy. The introduction of legislation to allow for Special Economic Zones at the end of last year will reduce the barriers to trade for those businesses that operate within them. In addition, the launch of the automated system for customs data this year is intended to make the processing of customs entries more efficient and to further advance the effectiveness of the Jamaica Customs Agency. Our Logistics Services division seeks to provide the full range of integrated warehousing and logistics solutions for businesses and consumers with a view to attaining a leading position in this market segment. Logistics Services projects now in-train range from straight warehouse rental arrangements to full service picking, packing, inventory control and distribution for local and international clients. Moreover, we have embraced the national initiatives to improve the ease of doing business by creating a portfolio of new or re-modeled high quality warehousing, office, production and open storage space that can allow businesses to immediately benefit from the Special Economic Zone legislation and, thereby, bring business to Jamaica. We have also directly supported the introduction of the automated systems for customs data and have deployed our security services in a manner that both assists national efforts at border control while ensuring the protection of our clients assets and goods in transit. These initiatives are directly in-line with our logistics strategy and will continue. Our strategic goals and priorities are clear and, in a challenging environment, we have made positive advances on all of them. I thank my colleague directors for their guidance and support during the Year and on their behalf also thank the leadership, staff, stakeholders, and partners of the KWL Group, who have all contributed to our success in. Although Kingston Wharves sees opportunity in the environment in which it operates, we know that these factors are certainly not a sufficient condition for our success. Success will also depend on the degree to which we deploy our capital and expertise in unique ways to exploit these opportunities. This objective has led us to strategically organize our business activities into two distinct foci: port operations and logistics services with each division playing a specific role in executing our growth plan. Our Port Operations will continue its program of capital improvements to its berth structure, container yard and equipment stock to improve efficiency. In, this included the purchase of a new crane and other cargo handling equipment and an ongoing program of expanding and re-organising our container yard by relocating on-dock warehousing. In addition, we have sought to maintain our market leading position as a multi-user, multipurpose port by improving our capabilities for handling a full range of automotive cargo, bulk cargo and breakbulk cargo that is demanded by consumers and businesses in Jamaica and elsewhere. KWL Annual Report - 70 years of Achievement 14

22 DIRECtORS Jeffrey Hall, BA, MPP, JD Chairman COMMITTEE: EXECUTIVE (CHAIR) Jeffrey Hall was appointed Non-Executive Chairman of the KWL Group in. He is the Chief Executive Officer of Jamaica Producers Group Ltd. (JPG) which is listed on the Jamaica Stock Exchange and has its primary interests in manufacturing, logistics and agri-business in the Caribbean and Europe. Mr. Hall joined the company in 2001 and has served as CEO since July Prior to joining JPG, he practiced banking and securities law in New York as a member of the New York Bar and was a founding partner of the Caribbean Investment Fund and senior executive of FINSAC, where he was involved in the acquisition and restructuring of various Jamaican financial institutions. In, Mr. Hall was appointed Chairman of Scotia Investments Jamaica Limited. Mr. Hall received his Juris Doctorate degree, with honours, from Harvard University. He also holds a Master of Public Policy (Public and International Finance) from Harvard University, where he was awarded the Woodrow Wilson Fellowship and a Bachelor of Arts degree in Economics (summa cum laude) from Washington University. OTHER BOARD AND COMMITTEE ASSOCIATION: Scotia Group Jamaica Limited, Scotia Investments Jamaica Ltd, Blue Power Group Limited, JAMPRO, Council of the Institute of Jamaica, Jamaica Producers Group. He has also served as a Director of the Bank of Jamaica and the Jamaica Stock Exchange. Length of Directorship: 4 years Grantley Stephenson, CD, JP Chief Executive Officer COMMITTEES: Executive, Audit, Compensation and Leadership Development Grantley Stephenson is the Chief Executive Officer of the Kingston Wharves Group. He joined KWL in 2003 as Managing Director and has served in the dual capacity of Executive Chairman and CEO over the period and An expert in the maritime sector of over 30 years, he is responsible for KWL s strategic development and expansion into a logistics centred hub for trade through the Caribbean. He has headed a number of shipping companies, including Seaboard Freight and Shipping Limited and Jamaica Merchant Marine, working in the areas of Ship Owning and Operations, Ship Management and Ship Agency representation. In 2010, Mr. Stephenson was ranked the No. 1 CEO among the companies trading on the Jamaica Stock Exchange by the Business Suite Magazine. He was re-elected as the President of the Caribbean Shipping Association in, having held the position since He is Dean of the Consular Corps of Jamaica and the Honorary Consul General for the Kingdom of Norway. For his outstanding work in this role, he was conferred with the Jamaican National Award of the Order of Distinction - Commander Class and the Royal Norwegian Order of Merit, the highest award to a non-national. A fellow of the Jamaica Institute of Management, Mr. Stephenson holds a Master of Business Administration from the University of the West Indies. He is also a graduate of the University of Technology in Jamaica and the University of Plymouth in the United Kingdom. Other Board and Committee Association: Security Administrators Limited, Shipping Association of Jamaica, Shipping Association of Jamaica Property Limited, Assessment Recoveries Limited, Ports Management Security Limited, ADVANTUM. Length of Directorship: 12 years 15

23 For more information please visit: Bruce Brecheisen COMMITTEE: Audit Mr. Brecheisen is an Executive Vice President with Seaboard Marine, a leading ocean carrier in the Caribbean and Latin America. During his more than 25 years at Seaboard Marine, he has handled many functions including finance, strategic planning, risk management, asset procurement and various administrative and operational roles. A graduate of Kansas State University, Mr. Brecheisen has been a voting member of the Port of Miami Crane Management, Inc. Board since Other Board and Committee Association: Career Source South Florida, formerly known as South Florida Workforce Board. Length of Directorship: 1 year Kim Clarke COMMITTEES: Executive, Compensation and Leadership Development Kim Clarke is the President of the Shipping Association of Jamaica and Managing Director of the Maritime and Transport Group of Companies. The Maritime and Transport Group consists of Maritime & Transport Services Limited, Maritime Towing Company Limited, Maritime General Insurance Brokers Limited, A.E. Parnell & Company Limited, Parnell Investment Limited and Seaport Equipment Limited. He is also the Managing Director of Boat Services Limited as well as Chairman of Amalgamated Stevedores Limited and Caribbean Crewing and Manning Services Ltd. Mr. Clarke is a graduate of the University of Miami. Other Board and Committee Association: R.S. Gamble Limited, Arnold L. Malabre & Company Limited, Newport Fersan Jamaica Limited, Caribbean Shipping Association, Shipping Association of Jamaica Property Limited, Jamaica Customs Advisory Board. LENGTH OF DIRECTORSHIP: 12 YEARS Marshall Hall, CD COMMITTEE: Audit Dr. Marshall Hall is a Director of Jamaica Producers Group Limited, where he served as Group Managing Director for over 25 years. Dr. Hall has been an academic economist and has served as Professor and Chairman of the Department of Management Studies (now the Mona School of Business) as well as Dean of the Faculty of Social Sciences at the University of the West Indies. He has also been a Professor at the University of Wisconsin in Madison Wisconsin, Washington University in St. Louis, Missouri and Makerere University in Kampala, Uganda. He has held numerous corporate directorships and served as board chairman in a wide range of institutions in the public, private, academic and non-profit sectors in Jamaica and internationally. He is also a member of the PSOJ Hall of Fame and has been awarded the Order of Distinction in the Rank of Commander (CD) and the Order of Jamaica (OJ) by the Government of Jamaica. Dr. Hall holds a Bachelor s Degree from the Colombia University and a PhD from the University of Wisconsin. OTHER BOARD AND COMMITTEE ASSOCIATION: Police Services Commission, Council University of the West Indies LENGTH OF DIRECTORSHIP: 1 year KWL Annual Report - 70 years of Achievement 16

24 DIRECTORS cont d Alvin Henry COMMITTEES: Compensation and Leadership Development, Audit (Chair) Alvin Henry is an Industrial Relations Consultant to the Shipping Association of Jamaica (SAJ). He retired from the SAJ in 2001 as its longest serving General Manager, having held the position for 20 years of a total 32 years of service to that organization. Mr. Henry is also a member of the Institute of Chartered Accountants of Jamaica, and has served as the Executive Vice President of the Caribbean Shipping Association. With his expertise and negotiation skills, he remains actively involved in the shipping industry. OTHER BOARD AND COMMITTEE ASSOCIATION: Joint Industrial Council for the Port of Kingston LENGTH OF DIRECTORSHIP: 11 YEARS Roger Hinds COMMITTEE: Compensation and Leadership Development He has worked in Jamaica s maritime sector for more than 30 years and is currently the Chairman of the Board of Transocean Shipping Limited and the founding Chairman of Transport Logistics Limited and Marine Haulage Service Limited. Mr. Hinds is a director and General Manager for recently established MSC Mediterranean Shipping Company Jamaica Limited. As Past President of the Shipping Association of Jamaica, he remains an active member of the associations management committee and continues to serve as Chairman of ADVANTUM, formerly Port Computer Services and a as Director of Assessment Recoveries Limited. Mr. Hinds holds a Bachelor of Arts degree and a Masters degree from the University of the West Indies. OTHER BOARD AND COMMITTEE ASSOCIATION: The Shipping Association of Jamaica Property Limited, The Joint Industrial Council for the Port of Kingston and Chairman of Group A (Agents & Stevedores) of the Caribbean Shipping Association. LENGTH OF DIRECTORSHIP: 12 YEARS Charles Johnston, CD COMMITTEE: Executive Charles Johnston is the Chairman and Managing Director of Jamaica Fruit and Shipping Company Limited. He is the Chairman of Jamaica Producers Group Limited, Seaboard Freight & Shipping Co. Limited and T.S. Crane Services. In 2013, he was also appointed Deputy Chairman of Scotia Group Jamaica Limited, having served as a Director of the Board since In 2006, Mr. Johnston was conferred with the National Award of the Order of Distinction, Commander Class and in 2008 he was inducted in the Hall of Fame of the Private Sector Organization of Jamaica. He holds a Bachelor of Science Degree in Economics, specializing in International Trade and Finance from the University of Pennsylvania s Wharton School of Finance and Commerce. OTHER BOARD AND COMMITTEE ASSOCIATION: Shipping Association of Jamaica, Shipping Association of Jamaica Property Limited, Kingston Port Workers Superannuation Fund, Bank of Nova Scotia Jamaica Limited, Jamaica Public Service Company Limited, B & D Trawling Limited, Lennox Portland Limited, Kingston Logistics Centre Limited. LENGTH OF DIRECTORSHIP: 12 YEARS 17

25 For more information please visit: Harriat Maragh COMMITTEE: Audit, Executive Harriat Maragh is the Chairman and Chief Executive Officer of Lannaman & Morris Shipping Limited. He is also Chairman of Seafreight Lines Inc., Metro Investments Limited, the Kingston Port Workers Superannuation Fund and a Past President of the Shipping Association of Jamaica. Mr. Maragh is a graduate of the Humber College of Applied Arts and Technology in Toronto, Canada and a member of the Institute of Chartered Shipbrokers. OTHER BOARD AND COMMITTEE ASSOCIATION: Shipping Association of Jamaica, Shipping Association of Jamaica Property Limited, Seafreight Agencies Inc., ADVANTUM, National Cruise Council of Jamaica, Assessment Recoveries Limited LENGTH OF DIRECTORSHIP: 12 YEARS Kathleen Moss, BSC, MBA, CBV COMMITTEE: Audit, Compensation and Leadership Development (Chair) Kathleen Moss is a Management Consultant and Chartered Business Valuator with Sierra Associates, an independent advisory and business valuation firm which she established in She is a member of the Canadian Institute of Chartered Business Valuators and Chair of JN General Insurance Company Limited. A graduate of the University of the West Indies and McGill University, she is a trustee of the Violence Prevention Alliance and a member of the Finance Committee of the Archdiocese of Kingston. Mrs. Moss Chairs the Audit Committees of Jamaica Producers Group and Pan Jamaican Investment Trust and is a member of the Audit and Finance Committees of Jamaica National Building Society. OTHER BOARD AND COMMITTEE ASSOCIATIONS: Jamaica Producers Group Limited, Assurance Brokers Jamaica Limited, JN General Insurance Company Limited, Jamaica National Building Society and Pan Jamaican Investment Trust Limited. LENGTH OF DIRECTORSHIP: 4 YEARS Robert Scavone COMMITTEE: Executive Robert Scavone currently provides advisory and management consulting services to a variety of clients including Deutsche Bank s $2 billion Maher Terminals investment, with terminals in the Port of New York/ New Jersey and Prince Rupert, Canada.He has held several senior executive roles in finance and the transportation industry including Managing Director of Macquarie Capital Funds portfolio of terminal operating companies and Executive Vice President of Ports America where he was responsible for business development, negotiations with ocean carriers, and other aspects of the company s operations in North America. Mr. Scavone has served on various Boards, including Terminales Rio de la Plata, Halterm Limited, Fraser Surrey Docks, Port of Miami Terminal Operating Company, and Port Newark Container Terminal. Qualified as an attorney-at-law, Mr. Scavone received his Juris Doctorate from University of Michigan Law School, and a Master of Laws in taxation from New York University School of Law. He has a Bachelors Degree in accounting from Boston College. OTHER BOARD AND COMMITTEE ASSOCIATION: Double You Consulting LLC LENGTH OF DIRECTORSHIP: 1 year Dorian Valdes COMMITTEE: Executive Dorian K. Valdes, P.E., is the Executive Vice President of The Sarandrea Group., a full service engineering company. Mr. Valdes is a professional engineer who has handled major infrastructure projects on behalf of the Miami Dade County where he worked for more than 25 years in several senior capacities including, Chief of the Water Management, and Recovery and Mitigation Divisions as well as Assistant Director with responsibility for US$ 2 Billion in technical improvements to the PortMiami infrastructure. He is a graduate of the University of South Florida with degrees in Chemistry (B.A.) and Chemical Engineering (B.S.) LENGTH OF DIRECTORSHIP: 1 year KWL Annual Report - 70 years of Achievement 18

26 DIRECTORS REPORT The directors are pleased to submit the Group results for Kingston Wharves Limited for the year. OPERATING RESULTS: - The Profit for the Group before income tax was $1.4 Billion. - The Profit for the Group after Tax and Minority Interest was $1.25 Billion. DIVIDENDS: The Directors recommend that the following dividends declared during be declared as final. - Ten cents ($0.10) per share paid on August 11, - Fifteen cents ($0.15) per share paid on January 20, 2016 Messrs. PricewaterhouseCoopers, the present auditors will continue pursuant to Section 154 of the Companies Act, The directors wish to express their sincere appreciation to the management and employees for their contribution. On behalf of the Board April 28, 2016 ANNA I. HARRY Company Secretary 19

27 For more information please visit: KWL Annual Report - 70 years of Achievement 20

28 CORPORATE GOVERNANCE Effective corporate governance continued to be a major priority of the Kingston Wharves Group in, as exemplified by the recruitment of a new Company Secretary/ Internal Legal Counsel, the review and modification of the Corporate Governance Policy (available on the KWL Websitewww.kingstonwharves.com), and the implementation of a formal process of Board Evaluation. The Board continues to conform to international governance standards while providing strategic direction for the Group and support to Management, all of which are critical to the creation of shareholder value and maintaining the confidence of stakeholders. CORPORATE GOVERNANCE STRUCTURE EXECUTIVES SHAREHOLDERS BOARD OF DIRECTORS COMPANY SECRETARY INTERNAL AUDIT MANAGER BOARD COMPOSITION AND DIRECTOR SKILLS AND EXPERIENCE The Board of Directors is comprised of 11 Independent, Non-Executive Directors and 1 Executive Non-Independent Director. Each Director contributes expertise in a variety of areas, as depicted in the chart below: KEY AREAS OF EXPERTISE OF THE BOARD OF DIRECTORS Terminal Operations Stevedoring, Transportation and/or Logistics Operations Ship Ownership, Operations, Management and Agency Risk Management and Strategic Planning Industrial Relations Finance, Economics and/or Accounting Engineering Business Management and Admiistration Legal Asset Procurement

29 For more information please visit: At all times, Directors are expected to exercise prudent, independent judgment in conducting the business of the Group, and to act in the best interest of the Group while balancing competing interests of stakeholders. In discharging that obligation, Directors rely on the expertise and guidance of the Company s senior management, external professional advisors and auditors. ATTENDANCE AT BOARD AND COMMITTEE MEETINGS There were six (6) scheduled meetings of the full Board during, as well as a number of special meetings to consider and decide on items of capital expenditure and other matters connected with the Company s strategic objectives. REGULARLY SCHEDULED BOARD MEETINGS DIRECTORS ATTENDANCE AT MEETINGS Jeffrey Hall, Chairman 6/6 Bruce Brecheisen 6/6 Kim Clarke 4/6 Dr. Marshall Hall 6/6 Alvin Henry 6/6 Roger Hinds 6/6 Charles Johnston 6/6 Harriat Maragh 4/6 Kathleen Moss 5/6 Robert Scavone 5/6 Grantley Stephenson 6/6 Dorian Valdes 6/6 SPECIAL BOARD MEETINGS DIRECTORS ATTENDANCE AT MEETINGS Jeffrey Hall, Chairman 3/4 Bruce Brecheisen 3/4 Kim Clarke 3/4 Dr. Marshall Hall 2/4 Alvin Henry 3/4 Roger Hinds 4/4 Charles Johnston 3/4 Harriat Maragh 2/4 Kathleen Moss 3/4 Robert Scavone 3/4 Grantley Stephenson 4/4 Dorian Valdes 2/4 For the year, the Board of Directors was assisted by the Executive, Audit, and Compensation and Leadership Development Committees. EXECUTIVE COMMITTEE The Executive Committee held four (4) meetings during with its principal mandate being to review and advise the Board of Directors on business development, capital expenditure, operational targets, and enterprise risks. DIRECTORS ATTENDANCE AT MEETINGS Jeffrey Hall, Chairman 4/4 Kim Clarke 4/4 Charles Johnston 4/4 Harriat Maragh 3/4 Robert Scavone 4/4 Grantley Stephenson 4/4 Dorian Valdes 4/4 KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 22

30 CORPORATE GOVERNANCE cont d AUDIT COMMITTEE The Audit Committee had four (4) meetings in in which it reviewed the integrity of the financial statements, accounting standards and controls, and budgets. The Committee also played a significant role in the review of the Company s internal operational processes with a view to implementing safeguards and improvements to enhance efficiency, safety, and profitability. DIRECTORS ATTENDANCE AT MEETINGS Alvin Henry, Chairman 4/4 Bruce Brecheisen 4/4 Dr. Marshall Hall 4/4 Harriat Maragh 3/4 Kathleen Moss 4/4 Grantley Stephenson 4/4 COMPENSATION AND LEADERSHIP DEVELOPMENT COMMITTEE The Compensation and Leadership Development Committee had four (4) meetings during, in which it managed the application of and sought to improve the policy and framework for incentive- based reward opportunities in support of the Company s business objectives. The Committee also had oversight of the Company s negotiations with the labour unions of which our employees are members. DIRECTORS ATTENDANCE AT MEETINGS Kathleen Moss, Chairman 4/4 Kim Clarke 2/4 Alvin Henry 4/4 Roger Hinds 4/4 Grantley Stephenson 4/4 BOARD EVALUATION In December, the Directors participated in an evaluation exercise aimed at ascertaining whether there are any areas in which the Directors believe improvements are needed. The results of that exercise indicate that Directors feel they have a good understanding of their responsibilities, as well as of the organisation and operations of the Board and its Committees. Directors also indicated that they are satisfied with the amount and quality of the information provided by management to the Board and its Committees, as well as with the overall performance of the Board, the Chairman, and Management. The suggestions for improvement which have been made include measures for improving the effectiveness and efficiency of the existing governance and management structures, and these recommendations are being implemented strategically and on a phased basis. DIRECTORS CONTINUING EDUCATION Directors receive year-round education and training regarding the Group and legal or regulatory and other changes impacting operations. Plans are in place to continue to expose the Directors to training opportunities, and the aim is to increase the number of training sessions in

31 For more information please visit: KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 24

32 As we move into 2016 and beyond, capacity building will underpin our GROWTH STRATEGY CEO S MESSAGE GRANTLEY STEPHENSON C.D., J.P. CHIEF EXECUTIVE OFFICER As the Chairman captured in his message, was a year of tremendous progress in moving forward the KWL agenda. We reported strong financial results and continued the transformation of our business; we are now focused on port operations and logistics services. We achieved record results at the end of the Financial Year, a 22% rise in revenues and 53% increase in profits before tax over the previous year with Group Revenues at J$4.7 billion and Operating Profits at $1.6 billion; their highest levels in five years. Net profits increased by 49% from J$849 million in to J$1.267 billion in, significant growth by any standard. Security Administrators Limited (SAL), the Group s port and industrial security subsidiary, delivered noteworthy performance by recording the highest level of inflows since % over the previous year. The outfitting of the KWL Terminal with a new Mobile Harbour Crane was one of the most significant moments of. The mobile harbour crane, Liebherr LHM 550, is the largest in operation on the Island and is designed to meet the demands of larger ships; it will also increase the efficiency of our stevedoring operations. The new crane is a significant component of a $600 million investment programme, which also includes two container stackers, to strengthen the terminal handling equipment mix and expand service capacity. There was major focus in on strengthening KWL s technology infrastructure and 25

33 For more information please visit: introducing innovative technologies to bolster operations. We increased our investment in IT- related projects by 33% to J$111 Million, up from the J$83.5 Million spent in. The Company acquired a fullscale Third-Party Logistics (3PL) processing software during the Year, which has enabled better inventory management and the generation of intelligent and preemptive reports for our growing number of logistics clients. With its scalability, the 3PL system is a major plank in KWL s logistics value proposition to meet the growing business demand anticipated in the year ahead. Terminal activity during the Year points favourably to our prospects for the post-panamax era where the KWL Group intends to further leverage its capabilities as a multi-purpose, multi-user port facility, along with its growing logistics capacity, to add value to cargo in Kingston for distribution throughout the Americas. Vessel calls increased by more than 20% or 143 vessels over the 690 vessels berthed in and there was a 51% increase in the number of domestic motorunits handled during the year. Domestic twenty-foot equivalent units (TEUs) increased by 24% from 69,000 in the prior year to 86,000 in, while transshipment TEUs increased by 8%, moving from 124,000 at year end to 134,000 at the end of. We know that logistics opportunity is as much about the build-out of the enabling physical infrastructure as it is about promoting KW s vision and its capacity to provide the synergies derived from combined port, warehousing, and customised logistics services; all of which are operated under special economic zone status. KW s port-centred logistics presents an attractive advantage to cargo owners who are perpetually refining and streamlining efficiencies of their supply chain. In, KW sought forums to present these services to key audiences, chief amongst these were the Jamaica Investment Forum and TOC Americas Conference. Participation in both highly targeted events continues to yield concrete and serious interest in our logistics services. retention. We know the value and importance of a Strong Team; our improved financial commitment to training demonstrates our strategic focus on human capital development as an important pillar in delivering our growth strategy. Retention and continued strengthening of our position as specialist port and related antinarcotic security services. SAL s strategic mission is focused on maximizing its potential across Jamaica and expanding its footprint as a City & Guilds accredited security training institution. The National Port Identification Centre, operated by SAL under delegated authority from the Port Authority of Jamaica, will undergo procedural, structural and equipment upgrades in 2016 to streamline operations for greater efficiency and profitability. Continued development and implementation of the framework and critical service tools to improve the quality of customer service and value proposition to our customers through the single-minded focus of the KW ACE Service Monitoring Committee on developing a culture of accountability, commitment, and excellence. Growth is the norm for the KWL Group. However, for growth to be sustainable, it must be supported by a strong institutional capacity: infrastructure readiness, business process strengthening, visionary and transformative leadership, balanced equity-debt financing and differentiable customer service. We are undaunted by this task as transformation is one of the hallmarks of the KWL Group. I have no reservations about the efforts we will make to ensure that we will do what will be required to make our strategy of Delivering Growth: Strategic Vision, Sound Investments, Strong Team, Serving Customers, a resounding success. As we move forward into 2016 and beyond, capacity building will underpin our growth strategy. Some of our efforts will include: Active construction of our 160,000 square foot Total Logistics Facility, introduced in, to ensure we meet the target for completion at the beginning of 2017 Utilization of our IT superstructure to introduce a host of measures to simplify and automate processes involved in the movement of motor vehicles to solidify our position as a regional autotranshipment hub. Improvement in the competencies of our Team, including greater productivity and more innovative thinking, to ideally match the new and more nimble age in shipping and the provision of logistics services. We have started this development in our Team and will continue the process of alignment of talent acquisition, development, management and KWL Annual Report - 70 years of Achievement 26

34 LEaderShip Team Our leaders bring a distinct set of experience and expertise needed to steer the KWL Group through this transformational period in global shipping, logistics and allied services. Together, they drive the achievement of our strategic imperative of delivering growth. Grantley Stephenson, C.D., J.P. Chief Executive Officer KWL Grantley Stephenson has executive management responsibility for maintaining the Group s businesses on the course of steady growth, profitability and sustainability through the planning and implementation of strategic objectives set out by the Board. He is also charged with developing, enhancing and sustaining effective strategic relationships with key stakeholders of the business. Mr. Stephenson is accountable for the achievement of the Group s vision and provides leadership in the formulation of long-term strategies with the overarching objective of enhancing the global positioning and competitiveness of our businesses. Length of Tenure: 12 Years Mark Williams Chief Operating Officer KWL Mark Williams is responsible for the development and execution of corporate strategy for the KWL Group. He ensures the efficient running of the Company and leads the monitoring and assessment of business performance to ensure the achievement of corporate goals and objectives. In addition to managing the Group s strategic planning process, he also has responsibility for domestic and international business development, marketing, customer service, terminal operations, safety and security as well as Human Resources. Length of Tenure: 4 Years Clover Moodie Group Chief Financial Officer KWL Clover Moodie is primarily responsible for planning, directing and controlling the Group s financial operations as well as all strategic and tactical matters as they relate to budget management, cost benefit analysis and financial forecasting. Ms. Moodie oversees the management and coordination of all fiscal reporting activities for the group and provides advice on asset acquisitions and management, as well as other major revenue and expense considerations. She also directs the information and communication technology systems portfolio for the Group. Length of Tenure: 2 Years 27

35 For more information please visit: Valrie Campbell Operations Manager - Receival & Delivery KWL Valrie Campbell is responsible for the implementation and monitoring of the systems, procedures and standards which support the efficient running of Kingston Wharves warehouse and landside terminal operations. This includes overall responsibility for the container freight station, yard and gate activities and other support functions to ensure adequate preparation for the receiving, safe custody and delivery of cargo. Ms. Campbell is KWL s Port Facility Security Officer (PFSO) and in this capacity provides oversight to the Terminal s Security and Safety portfolio. She also manages the investigation of all liability claims made to KWL and recommends appropriate action to management. Length of Tenure: 15 Years Lorna Dwyer Human Resources & Administration Manager KWL Lorna Dwyer is responsible for the strategic planning, directing and implementation of the company s human resources policies, programs, and practices. In line with KWL world-class objectives, Mrs. Dwyer contributes strategic human resources inputs to overall development of business and operational plans needed to achieve the company s vision. Mrs. Dwyer ensures that people management throughout the organization complies with the Company s policies, standards and values of acceptable standards of professionalism and management practices. Length of Tenure: 1 Year Jodenia Fergueson-Bryan Internal Audit Manager KWL Jodenia Fergueson-Bryan is responsible for the performance of internal audits, internal control compliance efforts, identification and communication of internal control issues and opportunities for all the Company s business units. She recommends and implements systems to strengthen internal control, improve policies and procedures and supports the Company s risk management strategy. Mrs. Fergueson-Bryan manages communication with external auditors regarding the internal control compliance program and supports the interim and year-end financial statement audits. Length of Tenure: 1 Year Lancelot Green Information Technology Specialist KWL Lancelot Green identifies information and communication systems technology that can contribute strategically to the achievement of business objectives. He administers the systems analysis and implementation of computer applications and hardware including upgrading, redundancies and compliant recording of the systems on a daily basis. Mr. Green also evaluates the company s technology use to continually improve systems as well as ensure that the security and integrity of systems and data are maintained at the highest standards. Length of Tenure: 1 Year KWL Annual Report - 70 years of Achievement 28

36 LEaderShip Team cont d Anna Harry Corporate Secretary and Legal Counsel KWL Anna Harry manages all matters relating to the governance, compliance and legal requirements of the Company and provides related reports to the Chairman and Board of Directors. She provides administrative support to the Board of Directors, ensuring efficient functioning of the Board and its sub-committees. She also provides legal advice to the Company regarding governance issues, liaises with the relevant departments to monitor and ensure compliance with all regulatory and statutory requirements. Ms. Harry also manages all liability claims made to KWL and recommends appropriate action to management. Length of Tenure: 1 Year Simone Murdock Marketing & Client Services Manager KWL Simone Murdock leads KWL s marketing and client services portfolio which includes strategy execution in the areas of client operations and experience and customer relationship management. She is responsible for streamlining client contact points, wharfage processes, developing service standards and procedures to monitor service protocol, ensuring service team s optimal performance, customer satisfaction and retention. Mrs. Murdock develops and maintains marketing, corporate communication and public relation strategy and campaigns. Additionally, she supports KWL s business development, and strategic planning efforts through her involvement in service adaptation, new product development and market research Length of Tenure: 7 Years Marcello Richards Engineering Manager KWL Marcello Richards has responsibility for the overall operations of all engineering and fleet management functions within the company. He ensures that the infrastructure, electrical systems and equipment are maintained at the highest level. Mr. Richards also develops and implements maintenance programs, designs and plans the layout of buildings and design structure as well as oversees resource planning and mobilization for construction and infrastructure works. Length of Tenure: 4 Years Lloyd Smith Technical Services Manager KWL Lloyd Smith is responsible for the monitoring and management of all electrical related systems, as well as mechanical construction and maintenance activities. He ensures that all electrical installations and systems are maintained at the highest level and also develops and implements effective electrical maintenance and mechanical engineering programmes for the facilities of the Company. Mr. Smith handles the procurement services of contractors to effect repairs on electrical installations and fixtures. Mr. Smith provides technical leadership for refrigerated container management and support services offered by the Company. Length of Tenure: 20 Years 29

37 For more information please visit: Omar Walker Safety & Security Manager KWL Omar Walker manages all aspects of the Company s safety and security policies and procedures in order to safeguard KWL personnel and property. He ensures periodic strategic review of all safety and security measures, monitors and investigates all safety and security breaches and implements corrective measures to improve effectiveness. Mr. Walker is also responsible for developing safety programmes and conducting employee training to ensure compliance with the Company s objectives. He also operates as KWL s Deputy Port Facility Security Officer, and in this capacity, Mr. Walker coordinates the company s adherence to protocols under the International Ship and Port Facility Security (ISPS) Code. Length of Tenure: 3 Years Captain George Reynolds, O.D., J.P. Managing Director SAL Captain George Reynolds is charged with leading the company and structuring all resources to increase the profitability of Security Administrators Limited. Captain Reynolds directs all aspects of management for the company and is primarily responsible to design, develop and implement strategic plans in alignment with objectives and targets. He also ensures that adequate security measures are implemented and maintained in order to protect the property of the terminal, shipping agents and consignees and reduce illicit use of the port. Length of Tenure: 4 Years Juliet Crawford Administration & Human Resources Manager SAL Juliet Crawford directs all human resources and administration related matters for Security Administrators Limited. She also manages the activities of the National Port Identification Processing Centre, which includes the production of port identification card. Her portfolio includes recruitment and staffing, preparation of employee contracts, performance evaluation and management, employee compensation, benefits, development and training. Length of Tenure: 20 Years Calvin Watson Assistant Operations Manager SAL Calvin Watson works closely with the Managing Director to oversee security and safety activities and manage daily operations at client locations, vessel security systems at the relevant port facilities. He is responsible for managing, training, and assessing performance of the company s security personnel and internal investigations. Length of Tenure: 28 Years KWL Annual Report - 70 years of Achievement 30

38 KWL Delivering GROWTH. is embarking on a high growth trajectory. This objective has led us to strategically organize our business activities into two distinct business lines: port operations and logistics services with each division playing a specifi c role in executing our growth plan. This means setting clear, stretching yet realistic, goals for delivery under each of the pillars of: Strategic Vision, Sound Investments, Strong Team, Serving Customers. To achieve our ambitious targets we see our new role as brokers of capabilities. This will require a different thinking: the ability to see possibilities where there were none. 4 This engagement will drive our focus on SERVING CUSTOMERS to not only ensure that we keep existing customers but to also help in acquiring new ones even as we expand our customer value proposition to deliver world-class service. SERVING CUSTOMERS 3 Our growth plan is ambitious and must be shaped by, and delivered through, a STRONG TEAM effort underpinned by a culture of meaningful and effective leadership, and employee and stakeholder engagement. STRONG TEAM 2 The achievement of our vision is platformed on SOUND INVESTMENTS in expanding facilities, improving equipment, modernizing technology, and developing our People. SOUND INVESTMENTS 1 We will remain focused on our STRATEGIC VISION of becoming the Best Multipurpose Port in the Region, but we have also set our sight on becoming the Lead Logistics Service Provider, an area of focus which represents growth opportunities for the KWL Group. STRATEGIC VISION 31

39 For more information please visit: Management S Discussion AND Analysis (MD&A) `` Performance 34 `` The Group 34 `` Kingston Wharves Limited 35 `` The Security Administrators Limited 36 `` Harbour Cold Stores 37 `` WINNING SERVICE STRATEGY: KWL ace 37 `` GRASPING THE LOGISTICS OPPORTUNITY 37 `` TECHNOLOGY UNDERPINNING OUR GROWTH STRATEGY 38 `` REALISING OUR VISION THROUGH HIGH PERFORMANCE PEOPLe 39 `` READYING INFRASTRuCTURE: OPTIMIZED AND RELIABLE EQUIPMENT 39 `` LEADERS IN SAFETY & SECURITY 41 `` Outlook KWL Annual Report - 70 years of Achievement 32

40 MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) The Management of Kingston Wharves Limited (KWL) is responsible for the reliability of the information disclosed in the Management Discussion and Analysis (MD&A). The MD&A provides an overview of the financial performance of the Group and its subsidiaries which is consistent with previous disclosures made by the Group and its audited financial statements for the Financial Year. This MD&A includes forwardlooking statements based on our current strategic plans and expectations about future events. In light of the risks, uncertainties and assumptions discussed in the Chairman s Message (Pages 13-14) and discussed in this section, there are risks that our actual experience will differ materially from the expectations and beliefs reflected in the forward-looking statements in this section and throughout this report. We started on a high note, embracing our important 70th anniversary milestone and embarking on a new phase of our transformation story that will see us evolving steadily into a gateway for trade in the Americas. The achievements realized over our 70-year journey fuel the strong belief in our vision that we will become, in the long-term, the world s leading multipurpose port operator. Several major achievements in showed us true to our strategic corporate development and expansion plans. These included, among other things, the acquisition of new state-of-the-art terminal handling equipment, the roll-out of vertically integrated services and a sharp focus on productivity and human capital development. 33

41 For more information please visit: in to J$1.3 billion in. This extraordinary performance is attributed to a notable expansion of activities at the Kingston Wharves Terminal, driven by targeted business development and marketing initiatives along with the Group s deliberate thrust to maximize operational efficiencies. The Group capitalized on the national focus in on developing a logistics-centred economy to create wider awareness of its operational capacity and strategic plans. This resulted in improved investor confidence in the KWL Group evidenced through increased demand for the Group s shares on the Jamaican Stock Exchange. This resulted in an 89% increase to KWL s stock price at year end, which climbed to J$11.36 per unit from J$6.00 per unit at the end of. GROUP REVENUE ($M) Performance THE GROUP Our results demonstrate clear delivery against our commitment to improving shareholder value through strategic investments that secure the Kingston Wharves Group s reputation as a leader in industry for more than 70 years. We achieved record results at the end of the Financial Year with both Group Revenues and Operating Profits reaching their highest levels in five years at J$4.7 billion and $1.6 billion, respectively. These numbers reflect a 22% increase in revenues and 53% increases in profits before tax over the previous year. Net profits also showed significant growth, increasing by 49% from J$849 million GROUP OPERATING PROFIT ($M) KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 34

42 MD&A cont d KINGSTON WHARVES LIMITED Revenues for Kingston Wharves Limited (The Company) increased to J$4.12 billion in, representing a 24.5% increase over the prior year s J$3.31 billion. Operating profits performed similarly, growing by 14% over from J$1.34 billion to J$1.52 billion at year end. Direct costs associated with the increased revenue levels saw a comparative reduction moving from 53% to 50% during the year under review. With all things considered, net profits grew commendably to J$1.23 billion or by a 17% margin over the prior year. Activity at the KWL Terminal showed evidence of a rebound in. Vessels calls increased by more than 20% with attendant increases in our handling of cargo volumes in the container, bulk, break-bulk and motor unit categories. There was a 51% increase in the number of domestic motor-units handled during the year, reflecting mainly the growing demand for motor vehicles in the Jamaican market and the presence of a new entrant to the new car distribution trade. Transhipment motor unit volumes increased marginally by 7%. Domestic twenty-foot equivalent units (TEUs) increased by 24% from 69,743 in to 86,707 in, while transhipment TEUs increased by 8%, moving from 124,000 at year end to 134,000 at the end of. The improving indices stem from a combination of factors, including consistently increasing volumes from KWL REVENUE ($M) CONTAINER TEU S HANDLED Domestic Transshipment , KWL OPERATING PROFIT ($M) MOTOR UNIT MOVES Domestic Transshipment ,407 51,675 21,087 59,237 17,098 47,401 15,207 34,521 22,971 36,930 90, ,628 96, ,065 90, ,244 69, ,550 86, ,

43 For more information please visit: some of our existing Shipping Lines and the recovery of business from another major customer. Our handling of Salt, Steel and Liquid bulk vessels accounted for further major increases in, moving by 50%, 43% and 31% over, respectively. SECURITY ADMINISTRATORS LIMITED Security Administrators Limited (SAL), the Group s port and industrial security subsidiary, grew its revenues by J$41 million to J$534 million in. SAL contributed J$43.8 million to Operating Profits and J$33.5 million to Net Profits of the KWL Group for. Operating Profits increased by 67% or J$17.5 million, over the previous year and is the highest level of inflows received by the Company since The Company undertook carefully managed cost containment initiatives during the period under review, chief among them being the commencement of an exercise to outsource, by natural attrition, its non-port security operations under the umbrella of SAL Security Services Limited. The process will be complete by year end 2016 and is to result in the elimination of redundant administrative processes and expenses. SAL s strategic mission in going forward is focused on maximizing its potential in specialist port and related anti-narcotic security services across Jamaica and expanding its footprint as a City & Guilds accredited security training institution. In continuation of the Company s modernization, it also intends to improve the penetration of best-in-class technology throughout its operations. Among the initiatives planned for 2016 is the overhauling of the National Port Identification Centre that SAL now operates under delegated authority from the Port Authority of Jamaica. The Centre is to undergo procedural, structural and equipment upgrades to streamline its operations for greater efficiency and profitability. SAL REVENUE ($M) SAL OPERATING PROFIT ($M) KWL Annual Report - 70 years of Achievement 36

44 MD&A cont d Harbour Cold Stores (HCS) A marginal improvement of 3% increased revenue for this business unit to J$92.5 million. Revenues for HCS are now generated from the refrigeration segment as well as fixed rental received under lease contract with the current operators of the cold storage facilities. Further streamlining of operations contributed to operating profit increasing by 14% increase when compared to period. The refrigerated services and cold storage operations continue HCS REVENUE ($M) HCS OPERATING PROFIT ($M) to add value to the Company s logistics offering and as such, going forward its contribution will be attributed to the logistics services business unit. WINNING SERVICE STRATEGY: KWL ACE Launched in 2013, the Group continued the roll-out of its Customer Service strategy, where it focused on upskilling and reengaging staff on its mantra of delivering world-class service through a team that is Accountable, Committed and striving for Excellence. The process involved the formation of an ACE Service Coordinating Committee, with Group-wide representation, to develop, operationalize and promote KWL s service standards. These standards are geared towards enhancing service quality and responsiveness with a view to engender greater levels of customer loyalty and increased business through organic channels such as customer and business-to-business referrals. GRASpING THE LOGISTICS OPPORTUNITY We launched a new range of logistics services targeted to clients in the Tourism, Pharmaceutical, Automobile and Petroleum industries. The synergies derived from combined port, warehousing, and customised logistics services, all of which are operated under special economic zone status, present an advantage to clients in the management of costs and streamlining efficiencies of their supply chain. Capitalising on our reputation as Jamaica s largest motor unit handling facility, KWL secured a global leading automobile brand as its logistics services client and also gained the interest of other well-established global automobile brands. The Company has expanded its logistics services clientele to include well-established brands in the petroleum, tourism and pharmaceutical industries. Our customised logistics services include the management of inbound and outbound fleet movement for domestic or transhipment destinations, customs and clearance processing, free zone facility usage and inventory management. The scope of services is expected to extend to the management of auto parts in In, Kingston Wharves Limited facilitated and participated in numerous trade shows, expositions, conferences and community interest gatherings in search of opportunities to realise our regional logistics hub aspirations. Chief amongst these activities was participation in the Jamaica Investment Forum which created a matchmaking platform with local and international investors. Participation afforded KWL the opportunity to position its logistics services to a highly targeted audience which yielded several leads now being actively developed into concrete and serious interests. A delegation, headed by Grantley Stephenson, Chief Executive Officer,, attended the Terminal Operators Conference (TOC) of the Americas, arguably the largest shipping-focused conference and exhibition held annually in the Caribbean and the 37

45 For more information please visit: Americas. Mr. Stephenson delivered a keynote address on the theme A New Era for the Caribbean in one of the Conference s opening sessions. His presentation focused attention on the imperatives for the Caribbean and, by extension, KWL to strengthen competiveness and realise the opportunities presented by the expansion of the Panama Canal and other developments in the Region. TECHNOLOGY UNDERPINNING OUR GROWTH STRATEGY A critical part of our Group s formula for success in the near-to-medium term is ensuring readiness for the wave of technical and technological changes that are imminent in the shipping and logistics industries. Not least of these are plans to fully implement the Automated System for Customs Data (ASYCUDA World) by the Jamaica Customs Agency, the development of a Port Community System (PCS) led by the Port Authority of Jamaica, and a Single Trade Electronic Window by Jamaica s Ministry of Industry, Investment and Commerce. These initiatives require KWL s technology systems to be robust and sophisticated to ensure seamless integration for real-time data exchange between users located in Jamaica and in international territory. Therefore, there was major focus in on strengthening KWL s technology infrastructure. Among the projects implemented was the harmonization of networking systems across our Free Zone and KWL Annual Report - 70 years of Achievement 38

46 MD&A cont d satellite offices using a centralized IT platform. Effectively, this project has paved the way for a more simplified means for users of KWL technology systems to interconnect and share information in the digital space. Virtualization and Replication became buzzwords across the KWL Group during the period under review as the Organization invested heavily in buttressing our systems to ensure mitigation, recovery and business continuity in emergency and disaster situations. Our virtualizations systems have also allowed for the expansion of our storage and IT processing capacity while eliminating the customarily high costs associated with investments in physical hardware. After extensive benchmarking, the Company acquired a full-scale Third- Party Logistics (3PL) processing software during the Year to better manage inventory and generate intelligent and pre-emptive reports for its growing number of logistics clients. With its scalability to meet the growing business demand anticipated in the year ahead, the 3PL system has become a major plank in KWL s logistics value proposition. REALISING OUR VISION THROUGH HIGH PERFORMANCE PEOPLE At the centre of the Human Resources (HR) strategy of the KWL Group is the philosophy that self-propelling, cohesive and high-performance people are more effective at accomplishing organizational goals. As the Company entrenches its 70-year tradition of breaking new frontiers in its many areas of business, our HR strategies have continued to evolve with the changing needs of industry and to adapt to new thinking in talent acquisition, development, management and retention. During a key area of focus under the HR portfolio included right-fitting the organization with competencies ideally matched to a new and more nimble age in shipping which now requires a faster pace and more innovative thinking. This right-fit strategy has guided our recruitment activities and drives our interventions in training, leadership development and succession planning through which we upskill team-members and expand our knowledge bases with a view to enhancing our competitiveness and institutional capacity. Several targeted training programmes were undertaken during the year covering the following functional areas: Stevedoring: Global Best Practices in Port Operations Management Safety & Security: Monitoring and Enforcing International Safety Standards Equipment Operations: Efficient Handling of Mobile Harbour Cranes Engineering: Pre-emptive, Preventative and Emergency Equipment Upkeep Information Technology: Hardware and Networking Competence Development In the Group began to explore a pioneering training and employee development initiative which involved the exploration of a formal partnership with the United Nation s International Labour Organization (ILO) based in Switzerland. The ILO, having been engaged in training for the port industry under their Dock Work and Occupationalv` Health & Safety conventions since the 1970s, offers a widely accredited and subscribed Portworker Development Programme across the Americas, Asia, Africa, Europe and the Arab States. The partnership agreement between Kingston Wharves and this body will be finalized through a long-term licensing agreement in Its operationalization will signal globally accepted port-work certification to a wide cross-section of KWL employees - with the dual benefit of ensuring their professional development and greater organizational alignment with international work standards. The funds have been earmarked in 2016 to properly fund the provision of timely and relevant learning, growth and certification opportunities for what is expected to be the largest ever contingent of employees trained during a financial year. READYING INFRASTRuCTURE: OPTIMIZED AND RELIABLE EQUIPMENT The outfitting of the KWL Terminal with a new Mobile Harbour Crane was one of the most significant moments of. Arriving at the facility in November, the Liebherr LHM 550 was acquired at a cost of J$460 million and has already increased the levels of productivity 39

47 For more information please visit: The LHM 550 is designed for versatile and efficient handling of up to Post- Panamax-sized vessels, reaching as far as 18 cargo containers across with a lifting capacity of 104 tonnes and 54 meters in maximum radius, depending on configuration. The new equipment is among the most modern in its class, including advanced Liebherr electronic systems which guarantee highly responsive, smooth and precise manoeuvrability while maximizing operational safety. KWL Annual Report - 70 years of Achievement 40

48 MD&A cont d achieved at the KWL port. The new state-of-the-art crane is particularly suited to boost operational capacity at Kingston Wharves, which handles an extensive range of cargo types including bulk, break-bulk and containers of multiple sizes. The latest addition brings KWL s crane fleet to a total of five and forms a major plank in our growth strategy and in ensuring Kingston Wharves will remain globally competitive in the Post-Panamax era. Additional equipment acquisitions during the Year included a new crane Spreader-Bar to support operations continuity during scheduled and unscheduled maintenance activity, three pick-up trucks to improve the mobility of technical teams across the expansive KWL footprint and advanced maintenance tooling machines, including a thermal imager for predictive maintenance and evaporative coolers for port and warehouse operations. There were also a number of notable infrastructure development projects completed in. This includes the rehabilitation of 1,500 square meters of container storage area under a second phase of execution the first being some 2,300 square meters of space rehabilitated during. Approximately J$31 million was spent on this undertaking during the Year under review as we continue to improve the wear-resistance of our operations areas to the rigours of heavy-duty port machinery. LEADERS IN SAFETY & SECURITY The KWL Group prides itself on being in tune with the leading trends and standards in Safety & Security. Having received certification under the International Ship and Port Facility Security (ISPS) Code in, valid through 2019, we continued to monitor, and enforce the strictest and largely intelligence-based security regulations which preserve the integrity of our gates, cargo passing through our facilities and our enviable reputation. We conducted 10 ISPS drills and training sessions during the Year with participation from staff at various technical and nontechnical levels of the Group. We actively engaged with members of our stakeholder community in quarterly KWL Port Security Committee meeting during the Year. This Committee received overwhelming support from Government and private sector partners involved in the provision of port security services and regulation, with whom we have far-reaching agreements that have introduced more risk-based strategies in port security management. As we move into more logistic- centric operations, we are increasing our security vigilance and have plans to overhaul our closed-circuit monitoring systems during 2016 and expand our electronic access control to greater monitor access and movements throughout our Free Zone space. The safety of our clients and employees is a central responsibility which the KWL Group takes seriously. We have engaged our clients, customers and stakeholders in several awareness-raising exercises, which yielded positive results in. Remaining proactive in this area, we reclassified jobs according to their levels of risk exposure and delivered sensitization interventions designed specifically for each group. There were also routine safety inspections which resulted in the implementation of timely corrective and preventative safety measures. Importantly, a safety breach ticketing system was introduced in which has significantly lowered the number of incidents recorded during the year. OUTLOOK 2016 As our transition to a logisticsdriven enterprise takes on greater momentum, we renew our focus on our critical success factors of infrastructure readiness, business process strengthening, visionary and transformative leadership and differentiable customer service. These, we believe, will ensure the Group is well placed to both take advantage of and create opportunities from the raft of changes expected in the regional shipping environment. In this phase of our next 70 years where trading patterns and routes are shifting to meet such major occurrences as the widening Panama Canal, an already expanded Suez Canal and the possibility of a new passage way via Nicaragua, ports in the Caribbean and the Americas are vying for increased volumes in the 41

49 For more information please visit: context of fewer vessel calls. This phenomenon is arising from the consolidation of cargo via alliances of shipping line with slot sharing agreements even amongst fierce rivals. We are strengthening all our bases with a focus on our staff that is sharper than ever before, recognizing that our foray and success in the realm of value-added services will require a team that is strong and innovative and highly-responsive to the needs of a new set of players. Our 160,000 square foot Total Logistics Facility (TLF), introduced in, is under active construction and is already generating interest from international and local stakeholders. The Facility is being built to first-world standards which will rival some of the best in the Caribbean. By the time of its completion in early 2017, the TLF will complement a deepened port draft at the KWL terminal and the post-panamax vessels that we expect to make Kingston a part of their regular routing. We are continuing to build on our reputation as a regional autotranshipment hub and will introduce in 2016 a host of measures that will utilise our IT superstructure to simplify and automate processes involved in the movement of motor vehicles. This is another ambitious goal of ours which we are confident will be achieved. Our goal remains to return value to our shareholders and increase our relevance and reputation through becoming the best at what we do, with the best team, the best equipment and the best infrastructure. We move forward with confidence knowing that the next 70 years and beyond will be a reflection of what we have so far accomplished, what we will do today and how we lay the foundation for the future. KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 42

50 Business Highlights The 70th Anniversary Commemoration - A World Class Vision built on 70 years of achievement - designed to enhance the Organisation s brand as a well-established Jamaican corporate entity positioned for the future. The 70th Anniversary commemoration included a series of staff-focused events culminating in a Thanksgiving Church Service. A brief address by the CEO and performances by the KWL 70th Anniversary Choir and Praise Academy of Dance aptly commemorated the Company s significant milestone. KWL 70th Anniversary Thanksgiving Service KWL Customer Appreciation Cocktail KWL Long Service Award Presentation National Association of Domino Bodies (NADB) Champions Kingston Wharves Domino Team 43

51 For more information please visit: Grasping the Logistics Opportunity Positioning the KWL logistics ambition for shareholders, prospective clients, and industry and community stakeholders was achieved through the Company s facilitation and participation in numerous trade shows, expositions, conferences and community interest gatherings. Chief amongst these activities was its participation in the Jamaica Investment Forum, Hon. Andrew Holness Tour of Kingston Wharves Limited. Former Minster of Ministry of Industry, Investment and Commerce, Hon. Anthony Hylton Tour of Kingston Wharves Limited Jamaica Producers Group Executive Retreat Port Tour & Luncheon KWL Annual Report - 70 years of Achievement 44

52 Commemorating 70 years of Support to the Development of Our Communities Corporate Social Responsibility 45 KWL understands and has operated on the belief that the achievement of national development will be the result of sustained commitment through focused support to select programmes and projects geared toward the long-term transformation of the lives of our youth, our shared community and our nation. Union Gardens Infant School A Best in Class Early Childhood Education Project In acknowledgment of the early childhood education mantra start them right, keep them bright, over the years, KWL has supported the development and sustainability of the Union Gardens Infant School. In, as part of the commemoration of its 70-years of working to transform the lives of young people in the community in which it operates, the support to the School was significantly increased. KWL collaborated with private and public stakeholders to conceptualise, design, fund, construct and administer selfsustaining operations to the School, a best-in-class early childhood facility, located in the surrounding community of Greenwich Farm. The new School, opened in September, welcomed 103 children between the ages of 3 6 years. The facility features large, airy classrooms with adjoining bathrooms, a spacious auditorium, covered walkway-linked buildings with play areas and landscaped common areas, and has the capacity for 150 students. This more than doubles the capacity of the original Union Gardens Christian Academy, adopted by KWL in That school is one of the three under resourced basic schools within the surrounding community that have been merged into this new Infant School. Through the assistance of the Chase Fund and Stewart s Industrial, free transportation to and from school is provided allowing children from communities adjoining Marcus Garvey Drive and Spanish Town Road to benefit from the improved learning environment. KWL continues to participate in the life of the School through its membership on the Board of the umbrella stakeholder group The Union Gardens Foundation, a duly registered charitable organization under the 2013 Charities Act. The success of the Union Gardens Project has generated support for the Foundation to replicate the initiative in other communities in Jamaica. Grasping the Logistics Opportunity

53 For more information please visit: SPORTS - The 26-year KWL UNDER-15 CRICKET COMPETITION continues its transformation of the lives of young cricketers many of whom have achieved world class acclaim. In, KWL also supported a junior competition of the JAMAICA TABLE TENNIS ASSOCIATION. KWL ANNUAL REPORT - 70 YEARS OF ACHIEVEMENT 46

54 shareholdings Top Ten Shareholders as at December 31, NAMES SHAREHOLDING % of Capital JAMAICA PRODUCERS GROUP LTD 600,736, S.B.D. LLC 300,689, SHIPPING ASSOCIATION OF JAMAICA PROPERTY LIMITED 164,079, KINGSTON PORTWORKERS SUPERANNUATION FUND 159,397, MARITIME & TRANSPORT SERVICES LTD 71,475, LANNAMAN & MORRIS (SHIPPING) LTD 28,845, SAGICOR POOLED EQUITY FUND 11,575, NCB INSURANCE CO LTD. - A/C WT ,000, SEAFREIGHT LINE 6,029, A. E. PARNELL 4,277,